Can a Collaborative Environment Decrease Workers’ Compensation Costs?

December 18, 2019

Employee health and wellness includes numerous factors, from morale and stress, to hazardous conditions in the workplace. With that in mind, it’s surprising how few companies encourage collaboration between managers to better control these elements and reduce workers’ compensation insurance costs.

Claims can increase rapidly if the proper precautions aren’t in place; and mitigating losses can be challenging if one person or department has to go it alone. Complicating matters even more, employees who already have medical conditions can incur additional costs after suffering an on-the-job illness or injury — further emphasizing the need for preventative measures. Thankfully, there are many solutions to this problem. Health and wellness initiatives may be implemented — and leaders across the company can collaborate with Amerisure experts to develop effective solutions.

Benefits and risks go hand in hand
The issue of coping with rising workers’ compensation costs falls on the shoulders of administrators, but dealing with the issues that cause these costs is spread out across a company. Benefits administrators and risk managers must work together to combat the frequency and severity of employee injuries.

Recently, at the Integrated Benefits Institute Annual Forum, experts discussed this key topic, and noted that employee health and workers’ compensation are closely linked. Injuries and illnesses don’t only arise due to hazardous conditions in the workplace — and it’s imperative to keep workers healthy and engaged year-round — something more aligned with benefits administration.

Education and measurement can simplify processes
The development of a quality risk management plan requires access to the best possible information, and that means educating managers and employees about the related hazards within the business.

A misunderstanding about the value of a healthy lifestyle can lead to inactivity and frustration among the workforce. Therefore, managers and employees should be educated about the benefits and incentive programs and other measures taken by the company. All programs should be employee-centric as well, as this can lead to additional positive results at all levels of the organization.

To implement an effective program, consider measuring the following categories:

  • Age of the workforce
  • Number of employees with multiple risk factors
  • Race and gender of employees
  • Number of people working more than one job

These factors all contribute to health concerns. Insights on demographics allow employers to tailor programs that help their current workforce stay healthy.

Talk to an agency today about how a collaborative environment between benefits administrators, risk managers and your Amerisure service team can help reduce expenses and keep your company on a healthful track.

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